Page 4 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Procurement Philosophy
PROCUREMENT PHILOSOPHY
Managing suppliers, the direc on of spend and claims leakage in respect of claim disbursements and payments made on behalf of Company
1. THE FOLLOWING IDENTIFIED FUNCTIONS ARE REQUIRED
1.1 Managing procurement: Hollard has a procurement panel which it makes available to you. The Binder Holder is to make use of the panel as it assists the Binder Holder to make use of properly ve ed suppliers such as panelbeaters, general repairers, salvage dealers in motor, loss adjusters, assessors and a orneys. These suppliers have also been accredited in terms of Black Economic Empowerment, which will have an e ect on Hollard's Black Economic Empowerment score. While Hollard will not contractually force the Binder Holder to use its procurement panel at the outset of the Binder Agreement, it does retain the right to do so should por olio management of the scheme be necessary, or if Hollard is required to do this because of its Black Economic Empowerment score.
1.2 Managing the direc on of spend.
1.3 Managing claims cost leakage.
1.4 SHOULD A NON-APPROVED SUPPLIER BE REQUIRED IN TERMS OF MOTOR CLAIMS, A DISCHARGE MUST BE SIGNED BY THE CLIENT BEFORE AUTHORISATION OF THE CLAIM CAN BE GIVEN.
2. THE FOLLOWING MINIMUM PROCESS MUST BE FOLLOWED
2.1 Managing direc on of spend
2.1.1 Facilita ng the use of BEE partners versus non-BEE partners.
2.1.2 Ensuring quality of service from suppliers (i.e. product and service quality).
2.1.3 Managing the grading of skills and workmanship according to criteria.
2.1.4 Managing supplier capacity.
2.2 Managing claims cost leakage
2.2.1 Implemen ng formal cost management strategies and ac on plans.
2.2.2 Providing channel cost analysis reports (re ec ng supplier adherence to procurement contracts and agreed pricing models).
3. THE FOLLOWING MINIMUM CONTROLS MUST BE IN PLACE
3.1 Ensuring that all suppliers are loaded on the system. For the purposes of good governance, the client pro le and banking details will be processed (and updated) by the nance team upon being presented with a signed contract and other relevant details.
3.2 Providing excep on reports (for example, number of suppliers or assessors used, as well as authorised spend directed to suppliers not on the list of approved providers).
4. REGISTERS THAT MUST BE KEPT BY BINDER HOLDING
4.1 Salvagee register for both non-motor and motor
4.2 Stolen vehicle register
4.3 Rejected claims
4.4 Ex gra a claims
4.5 Recoveries
4.6 Complaints register in accordance with TCF
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Binder Claims Mandates and Guidelines – 2015/2016